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Message: RE: Advance payments on purchase orders...Larry...

RE: Advance payments on purchase orders...Larry...

posted on Feb 04, 2005 08:03AM
Larry agreed

LOL The Martinez, Ortiz analogy is excellent. Plus the company can and will use the monies received as advance payments (to bolster the figures to show increased quarter to quarter revenue, when by all appearance that is not the case) as revenue for the NEXT quarters reporting once the products have been delivered. Kinda like double dipping.

The trouble with including advance payments in this ``guidance``, is these same monies will be ``used`` again when it is officially booked as revenue. When you get on a slippery slope like that you better be sure that sometime ``soon`` your revenues will catch up so you can stop including advance payments to make your numbers. If not you will end up with those screeching to a halt , no revenue quarters we have experienced in the past, following a ``record quarter``.

The company/their accountants are the one who determines what is considered revenue, not us. IMO they should stick to that when reporting, rather than blur revenue, advance payments, deposits etc.

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